We recently purchased a house in New York, the lawyers may have have messed up on the cost of the Mortgage Tax that was due from us (the buyer). A day after the closing, the seller contacted us about the wrong amount. Is the seller allowed to ask for more money after the closing?
2007-10-09 15:20:23 · 5 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Thank you for your responses everyone. The seller initially contacted us, but now deals with our closing lawyer.
Basically, the seller is saying we owe them more money on the mortgage tax because some saving that was supposed to go to them, was given to us. During the closing they had two lawyers in the room, as well the title company. They all went through amounts and even told us directly that we were saving money on the mortgage tax. A day later the seller says the saving should have went to the seller.
The amount is $6,000. The seller is ready to take this to civil court.
2007-10-09 17:32:23 · update #1
The seller can ask for anything they want and anyone can sue you at any time for anything. But, you don't have to comply (nor should you) and if they do sue you they have to prove that you have done something wrong. This is why we use title companies and closing agents. It takes you out of the line of fire.
They are probably referring to the tax pro-rations or tax credits, which go to the buyer (unless you waive your right to the pro-rations, which would have to be in the purchase contract). Look at lines 211 & 511 on your HUD1 or settlement statement. That's the document with all of the closing costs on it. The numbers on both lines should be the same and that amount should have gone to you.
Relax and let your title company deal with them. Do not entertain any conversation with them over this issue. Defer them to the title company.
2007-10-09 17:48:26 · answer #1 · answered by RealEstateGuy 2 · 0⤊ 0⤋
No the seller is NOT allowed to ask you for money after the closing.
Please DO NOT have any conversation with the Seller; Or
give the Seller ANY MONEY without consulting with either
an attorney or with YOUR Realtor. Hopefully you had a Realtor that represented YOU during the transaction.
When you say that "the lawyers may have messed up the Mortgage Tax" .... Whose lawyer are you talking about???
The Title Company or the Closing Agency (usually a Title or
Escrow Company) ... Should have verified ALL figures and
calculations PRIOR to closing.
Again .... Don't do ANYTHING without representation!
2007-10-09 15:34:40 · answer #2 · answered by kjh 3 · 1⤊ 0⤋
Contact your agent, the title company. The seller should never have contacted you directly. They could be lying to you. The title co. should have made sure everything was correct at closing for you to sign. Don't speak to the sellers again if they call. Only talk to those already mentioned. Something doesn't smell right if you know what I mean. Be very careful.
2007-10-09 15:39:06 · answer #3 · answered by KM 3 · 0⤊ 0⤋
Refer the seller to the closing agent. That's who they need to deal with.
2007-10-09 15:33:27 · answer #4 · answered by Bostonian In MO 7 · 1⤊ 0⤋
The lawyers who handled the closing should do the fixing. If you got too much, they will ask you to pay it back.
2007-10-09 15:30:20 · answer #5 · answered by Anonymous · 1⤊ 0⤋